{"id":11135,"date":"2014-07-14T23:24:33","date_gmt":"2014-07-14T23:24:33","guid":{"rendered":"http:\/\/www.cloudcomputing-news.net\/news\/2014\/jul\/15\/rackspace-plays-its-strengths-new-managed-cloud-offering\/"},"modified":"2014-07-14T23:24:33","modified_gmt":"2014-07-14T23:24:33","slug":"rackspace-plays-to-its-strengths-with-new-managed-cloud-offering","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/rackspace-plays-to-its-strengths-with-new-managed-cloud-offering\/","title":{"rendered":"Rackspace plays to its strengths with new Managed Cloud offering"},"content":{"rendered":"<p>Rackspace has today announced a managed services offering called Managed Cloud which aims to give flexibility on managed services but with DIY-styled pricing.<\/p>\n<p>The new Managed Cloud service offers two options: Managed Infrastructure, which offers what seems to be a standard 24&#215;7 access to engineering support plus other features including architectural, security and launch guidance, and Managed Operations, which is essentially Rackspace managing the account 24&#215;7.<\/p>\n<p>Speaking to <em>CloudTech<\/em>, Rackspace VP technology and products Nigel Beighton said Managed Infrastructure was more of a &ldquo;reactive&rdquo; service as opposed to Managed Operations. &ldquo;Effectively we&rsquo;re rationalising across the board for all of our products,&rdquo; he said.<\/p>\n<p>The move towards this product has evidently come from a rise in hybrid cloud, the more pervasive nature of cloud computing yet with a greater variety of customers and options available to those customers. Last year Rackspace released a survey detailing how hybrid cloud was seen as <a href=\"http:\/\/www.cloudcomputing-news.net\/news\/2013\/aug\/15\/rackspace-survey-hybrid-cloud-future-three-five-enterprises\/\">the future for three in five enterprises.<\/a><\/p>\n<p>And, with a relatively turbulent time for the firm &ndash; moving co-founder Graham Weston back as CEO <a href=\"http:\/\/www.cloudcomputing-news.net\/news\/2014\/feb\/12\/rackspace-ceo-retires-claims-time-good-any-step-down\/\">after the retirement of Lanham Napier<\/a>, rumours abound of becoming a private company &ndash; it makes sense that this latest offering plays into Rackspace&rsquo;s main strength, managed cloud hosting.<\/p>\n<p>Rackspace offers a fully managed service but often gets lumped in the same category as an Amazon Web Services, an Azure or a Google, leading to what may be considered unfair comparisons.<\/p>\n<p>Beighton refused to agree with it being a &lsquo;bugbear&rsquo; when <em>CloudTech<\/em> put it to him, instead artfully calling it &ldquo;a good marketing challenge.&rdquo;<\/p>\n<p>&ldquo;I must admit I&rsquo;m forever explaining the difference to people and, do you know what, I think I still will be going forward, just because you&rsquo;ve got some very strong players in the market,&rdquo; he explains.<\/p>\n<p>Pricing is a key element in Rackspace&rsquo;s strategy, least of all being obfuscatory in its cost structure when compared to unmanaged IaaS providers.<\/p>\n<p>&ldquo;One of the key elements on the pricing is &lsquo;we could have been opaque&rsquo; &ndash; hide the raw infrastructure costs within the support charge,&rdquo; Beighton says. &ldquo;If we did that we just felt that wasn&rsquo;t being transparent, one of our core values to our customer base.<\/p>\n<p>As a result, when a Racker gets a bill, they get it in triplicate: a service charge; the infrastructure cost; and automatically applied discounts based on their total spend. And this is where the comparisons with Google, in particular, come in.<\/p>\n<p>&nbsp;&ldquo;We&rsquo;ve adopted very much the same model as Google in terms of discounting,&rdquo; Beighton says. &ldquo;It&rsquo;s not so much people asking for it, it&rsquo;s about automatically applying it so they know where they stand.<\/p>\n<p>&ldquo;That comparison with Google, and Azure, and AWS, will always be there, and it&rsquo;s why we are transparent on the pricing side of it because there will be part of what we do always compared with what they do.&rdquo;<\/p>\n<p>Rackspace is quick to note that not every company would be ripe for this Managed Cloud offering. Beighton argues there are three types of customer for this model; startups who are out of their early development phase; SMB to low end enterprise who don&rsquo;t want to build new skills; and companies who want the agility and cost savings of cloud.<\/p>\n<p>Yet for those who do buy in to the Rackspace product, it&rsquo;s a big commitment. Similar to the likes of Salesforce and others, Rackspace customers &ndash; or Rackers &ndash; are seen as fans, who get &lsquo;fanatical support&rsquo; from their provider.<\/p>\n<p>Beighton argues this is a good thing for the company. &ldquo;We&rsquo;re a human business,&rdquo; he says. &ldquo;We&rsquo;re not about the infrastructure, we&rsquo;re about the people.&rdquo;<\/p>\n<p>Managed Infrastructure comes in at &pound;0.0035 per GB\/hr RAM with &pound;35 per month minimum, while Managed Operations costs &pound;0.0150 with a &pound;350 per month minimum spend.<\/p>\n<p>You can find out more about the product <a href=\"http:\/\/www.rackspace.com\/blog\/managed-cloud-a-new-way-to-stay-fast-and-lean\/?utm_medium=social&amp;utm_source=Twitter&amp;utm_campaign=culture\">here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rackspace has today announced a managed services offering called Managed Cloud which aims to give flexibility on managed services but with DIY-styled pricing.<br \/>\nThe new Managed Cloud service offers two options: Managed Infrastructure, which offers what s&#8230;<\/p>\n","protected":false},"author":50,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-11135","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/11135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/50"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=11135"}],"version-history":[{"count":0,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/11135\/revisions"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=11135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=11135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=11135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}